From Anthony Piszel, the CFO of Freddie Mac. In the letter Piszel tried to claim that there is nothing wrong with Freddie. He claimed that those that think Freddie will go under need to look away from “Freddie Mac’s fair-value balance sheet to ascertain our financial condition. Freddie Mac is a buy-and-hold investor- we invest in mortgages with the intent of holding them to maturity. So today’s mortgage valuations are less relevant a measure of our financial condition, especially given the highly subjective nature of these valuations in today’s market.”

In other words the market has been wrong to lower the value of Freddie Mac’s mortgage securities and we at Freddie Mac believe they deserve more value than they have right now and if they did our balance sheet would look fine so don’t look at our balance sheet to figure out the financial condition of our company, but instead listen to what we tell you.

Two days after this letter was published Freddie Mac accepted a takeover by the US government.